put option
Bearish derivative contract
A put option is a financial contract that gives the holder the right, but not the obligation, to sell an asset at a specified price within a set time period.
Investors buy puts when they expect a stock's price to fall, allowing them to sell at the higher strike price regardless of market conditions.
I bought a put option as a hedge against my portfolio dropping.
Put options are often contrasted with call options, which give the right to buy rather than sell.
Predetermined option execution level
- expirationEnd of validity
- premiumAdded cost for better
- exerciseActivity for fitness
- contractsEnforceable written agreements
in the money · out of the money · buyer · seller · rights · obligations · assignment · settlement
Expecting market decline
- pessimisticExpecting negative outcomes
- market declineDrop in trading values
- capitulationComplete yielding to demands
- panic sellingFear-driven mass liquidation
Contractual risk coverage
- risk managementIdentifying and minimizing threats
- tail riskUnlikely extreme outcome probability
- defensiveProtective or easily threatened
- crash protectionMechanisms minimizing collision harm
Alluvial formation at mouth
- VegaLyra's alpha star
- sensitivityResponsiveness to stimuli
- pricing modelMethod for determining costs
Neck encirclement
- strangleConstrict the throat
- straddleSit with legs spanning
- rollingTurning over repeatedly
- entry pointWhere access begins
strike price
Predetermined option execution level
- expirationEnd of validity
- premiumAdded cost for better
- exerciseActivity for fitness
contracts · in the money · out of the money · buyer · seller · rights · obligations · assignment · settlement · intrinsic value
bearish
Expecting market decline
- pessimisticExpecting negative outcomes
- market declineDrop in trading values
- capitulationComplete yielding to demands
insurance
Contractual risk coverage
- risk managementIdentifying and minimizing threats
- tail riskUnlikely extreme outcome probability
- defensiveProtective or easily threatened
Delta
Alluvial formation at mouth
- VegaLyra's alpha star
- sensitivityResponsiveness to stimuli
- pricing modelMethod for determining costs
collar
Neck encirclement
- financial contractsfutures contract, forward contract, insurance policy, derivative, annuity
- derivativesderivatives, sequel, remake, spinoff, forward
- optionsstrike price
- stock optionsstrike price, vesting, vesting schedule, ISO, ISOs
- tradingbid, buy, ask, sell, trading
- choiceschoice, choose, decide, decision, select